Tag Archives: hottest markets

Inventory constraints that have fueled a sharp rise in home prices and made it difficult for buyers to gain a foothold in the market will begin to ease next year as part of broad and continued market improvements.

The easing of the inventory shortage, which is expected to result in more manageable increases in home prices and a modest acceleration of home sales, is being predicted based on developments first detected by realtor.com® late this summer. The annual forecast, which is among the industry’s bellwethers in tracking and analyzing major trends in the housing market, also foresees an increase in millennial mortgages and strong sales growth in Southern markets. The wildcard in 2018 will be the impact of tax reform legislation currently being debated in Congress.

Next year will set the stage for a significant inflection point in the housing shortage. Inventory increases will be felt in higher priced segments after spring home buying season, which we expect to take hold and begin to provide relief for buyers and drive sales growth in 2019 and beyond.

Realtor.com® Forecast for Key Housing Indicators

Housing Indicator

Realtor.com® 2018 Forecast

Home price appreciation

3.2% increase, enabling a sales pickup

Mortgage rate

Average 4.6% throughout the year and reach 5.0% (30 year fixed) by the end

Existing home sales

2.5% growth, low inventory trend starts to reverse

Housing starts

3% growth in home starts; 7% growth in single family home starts

New home sales

Increase 7%

Home ownership rate

Stabilize at 63.9% after bottom in Q2-2016

Five Housing Trends for 2018

Inventory expected to begin to increase – In August, the U.S. housing market began to see a higher than normal month-over-month deceleration in inventory that has continued into fall. Based on this pattern, realtor.com® projects U.S. year-over-year inventory growth to tick up into positive territory by fall 2018, for the first time since 2015. Inventory declines are expected to decelerate slowly throughout the year, reaching a 4 percent year-over-year decline in March before increasing in early fall, after the peak home-buying months. Boston; Detroit; Kansas City, Mo.; Nashville; and Philadelphia are predicted to see inventory recover first. The majority of this growth is expected in the mid-to-upper tier price points, which includes U.S. homes priced above $350,000. Recovery for starter homes is expected to take longer because their levels were significantly depleted by first time buyers.

Price appreciation expected to slow – Home prices are forecasted to slow to 3.2 percent growth year-over-year nationally, from an estimated increase of 5.5 percent in 2017. Most of the slowing will be felt in the higher-priced segment as more available inventory in this price range and a smaller pool of buyers forces sellers to price competitively. Entry-level homes will continue to see price gains due to the larger number of buyers that can afford them and more limited homes available for sale in this price range.

Millennials anticipated to gain marketshare in all home price segments – Although millennials will continue to face challenges next year with rising interest rates and home prices, they are on track to gain mortgage market share in all price points, due to the sheer size of the generation. Millennials could reach 43 percent of home buyers taking out a mortgage by the end of 2018, up from an estimated 40 percent in 2017. With the largest cohort of millennial expected to turn 30 in 2020, their homeownership market share is only expected to increase.

Millennials are a driving force in today’s housing market. They already dominate lower price home mortgage and are getting close to overtaking older generations for mid- and upper-tier mortgages. While financially secure in general, their debt to income ratios have started to increase as they compete for higher priced homes.

Southern markets predicted to lead in sales growth – Southern cities are anticipated to beat the national average in home sales growth in 2018 with Tulsa, Okla.; Little Rock, Ark.; Dallas; and Charlotte, N.C. leading the pack. Sales are expected to grow by 6 percent or more in these markets, compared with 2.5 percent nationally. The majority of this growth can be attributed to healthy building levels combating the housing shortage. With inventory growth just around the corner, these areas are primed for sales gains in years to come.

Tax reform will be a major wildcard – At the time of this forecast, both the House and Senate had bills up for consideration, but neither had passed and their impact was not included in the forecast for 2018 sales and prices. Since then, the House has passed its tax bill and the Senate bill is likely to be voted on soon. While the ultimate impact of tax reform will depend on the details of the plan that is finally adopted, both versions include provisions that are likely to decrease incentives for mobility and reduce ownership tax benefits. On the flip side, some taxpayers, including renters, are likely to see tax cuts. While more disposable income for buyers is positive for housing, the loss of tax benefits for owners could lead to fewer sales and impact prices negatively over time with the largest impact on markets with higher prices and incomes.

Next year, home prices are anticipated to increase 3.2 percent year-over-year after finishing 2017 up 5.5 percent year-over-year. Existing home sales are forecast to increase 2.5 percent to 5.60 million homes due in-part to inventory increases, compared to 2017’s 0.4 percent increase or 5.47 million homes. Mortgage rates are expected to reach 5.0 percent by the end of 2018 due to stronger economic growth, inflationary pressure, and monetary policy normalization in the year ahead.

Top 100 Largest U.S. Metros Ranked by Forecasted 2018 Sales and Price Growth

Rank

Metro

2018 Sales Growth

2018 Price Growth

1

Las Vegas-Henderson-Paradise, Nev.

4.90

6.90

2

Dallas-Fort Worth-Arlington, Texas

6.02

5.57

3

Deltona-Daytona Beach-Ormond Beach, Fla.

5.47

6.00

4

Stockton-Lodi, Calif.

4.55

6.43

5

Lakeland-Winter Haven, Fla.

3.00

7.00

6

Salt Lake City, Utah

4.62

4.50

7

Charlotte-Concord-Gastonia, N.C.-S.C.

5.98

3.02

8

Colorado Springs, Colo

3.12

5.65

9

Nashville-Davidson–Murfreesboro–Franklin, Tenn.

1.00

7.67

10

Tulsa, Okla.

7.54

1.02

11

Seattle-Tacoma-Bellevue, Wash.

2.34

6.21

12

Spokane-Spokane Valley, Wash.

3.50

4.97

13

Austin-Round Rock, Texas

4.04

4.42

14

Miami-Fort Lauderdale-West Palm Beach, Fla.

3.10

5.28

15

Little Rock-North Little Rock-Conway, Ark.

7.00

1.37

16

Denver-Aurora-Lakewood, Colo.

1.75

6.54

17

Orlando-Kissimmee-Sanford, Fla.

1.24

6.88

18

Toledo, Ohio

5.16

2.95

19

Columbia, S.C.

5.07

3.00

20

Palm Bay-Melbourne-Titusville, Fla.

1.00

7.00

21

Jacksonville, Fla.

4.73

3.20

22

Durham-Chapel Hill, N.C.

5.18

2.62

23

Providence-Warwick, R.I.-Mass.

3.72

3.97

24

Akron, Ohio

5.89

1.70

25

North Port-Sarasota-Bradenton, Fla.

3.00

4.50

26

Chattanooga, Tenn.-Ga.

3.50

4.00

27

Worcester, Mass.-Conn.

3.77

3.68

28

Raleigh, N.C.

1.63

5.77

29

Tampa-St. Petersburg-Clearwater, Fla.

1.38

6.00

30

Grand Rapids-Wyoming, Mich.

2.96

4.25

31

Boise City, Idaho

2.00

5.00

32

San Jose-Sunnyvale-Santa Clara, Calif.

2.50

4.37

33

Greenville-Anderson-Mauldin, S.C.

2.80

4.00

34

Madison, Wis.

1.72

5.05

35

Albuquerque, N.M.

2.92

3.71

36

Houston-The Woodlands-Sugar Land, Texas

2.24

4.19

37

Winston-Salem, N.C.

3.00

3.21

38

Riverside-San Bernardino-Ontario, Calif.

0.52

5.66

39

Buffalo-Cheektowaga-Niagara Falls, N.Y.

1.27

4.89

40

Fresno, Calif.

1.29

4.81

41

San Francisco-Oakland-Hayward, Calif.

0.94

5.14

42

Detroit-Warren-Dearborn, Mich.

1.17

4.77

43

Phoenix-Mesa-Scottsdale, Ariz.

3.66

2.26

44

Oxnard-Thousand Oaks-Ventura, Calif.

2.29

3.62

45

Augusta-Richmond County, Ga.-S.C.

2.50

3.34

46

Tucson, Ariz.

3.00

2.71

47

San Diego-Carlsbad, Calif.

2.51

3.19

48

Youngstown-Warren-Boardman, Ohio-Pa.

3.01

2.50

49

Harrisburg-Carlisle, Pa.

2.50

3.00

50

Cleveland-Elyria, Ohio

3.00

2.48

51

Birmingham-Hoover, Ala.

3.00

2.42

52

McAllen-Edinburg-Mission, Texas

2.38

3.00

53

Charleston-North Charleston, S.C.

3.64

1.69

54

New York-Newark-Jersey City, N.Y.-N.J.-Pa.

1.16

4.15

55

Jackson, Miss.

0.00

5.30

56

Virginia Beach-Norfolk-Newport News, Va.-N.C.

1.40

3.82

57

Boston-Cambridge-Newton, Mass.-N.H.

2.55

2.64

58

Pittsburgh, Pa.

3.53

1.62

59

Oklahoma City, Okla.

1.49

3.51

60

Portland-South Portland, Maine

5.00

0.00

61

Cape Coral-Fort Myers, Fla

1.00

3.99

62

El Paso, Texas

2.69

2.24

63

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

0.00

4.93

64

Knoxville, Tenn.

2.00

2.92

65

Allentown-Bethlehem-Easton, Pa.-N.J.

4.12

0.57

66

Bakersfield, Calif.

1.00

3.61

67

Urban Honolulu, Hawaii

1.43

3.11

68

Des Moines-West Des Moines, Iowa

3.20

1.19

69

Greensboro-High Point, N.C.

1.34

2.97

70

Springfield, Mass.

1.24

3.00

71

New Orleans-Metairie, La.

2.00

2.24

72

Cincinnati, Ohio-Ky.-Ind.

1.47

2.32

73

Wichita, Ks.

2.23

1.49

74

Richmond, Va.

2.68

1.02

75

Columbus, Ohio

0.05

3.58

76

Sacramento–Roseville–Arden-Arcade, Calif.

1.00

2.61

77

Rochester, N.Y.

1.56

2.02

78

Hartford-West Hartford-East Hartford, Conn.

4.46

-1.05

79

Albany-Schenectady-Troy, N.Y.

0.75

2.55

80

Dayton, Ohio

3.01

0.19

81

Memphis, Tenn.-Miss.-Ark.

1.37

1.82

82

Scranton–Wilkes-Barre–Hazleton, Pa.

1.18

1.81

83

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

3.78

-1.04

84

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

0.00

2.57

85

Syracuse, N.Y.

0.00

2.57

86

Milwaukee-Waukesha-West Allis, Wis.

0.00

2.48

87

Baltimore-Columbia-Towson, Md.

0.48

1.82

88

New Haven-Milford, Conn.

2.96

-0.67

89

Washington-Arlington-Alexandria, D.C.-Va.-Md-W.V.

0.00

2.25

90

Omaha-Council Bluffs, Neb.-Iowa

0.00

2.18

91

Louisville/Jefferson County, Ky.-Ind.

-2.74

4.92

92

San Antonio-New Braunfels, Texas

0.37

1.52

93

Portland-Vancouver-Hillsboro, Ore.-Wash.

-3.48

4.98

94

Baton Rouge, La.

0.00

1.50

95

Atlanta-Sandy Springs-Roswell, Ga.

-1.88

2.99

96

Los Angeles-Long Beach-Anaheim, Calif.

-2.10

3.09

97

Indianapolis-Carmel-Anderson, Ind.

3.49

-2.53

98

Kansas City, Mo-Kan.

0.00

-0.12

99

St. Louis, Mo.-Ill.

0.00

-2.83

100

Bridgeport-Stamford-Norwalk, Conn.

-0.35

-2.87

Realtor.com’s model-based forecast uses data on the housing market and overall economy to estimate values for these variables for the year ahead. The forecast result is a projection for annual total sales increase (total 2018 existing-home sales vs. 2017) and annual median price increase (2018 median existing-home sales price vs. 2017).

We analyzed 32,000 ZIP codes based on the time it takes properties to sell and how frequently homes are viewed in each ZIP code. Homes in this year’s top 10 hottest markets sell in an average of 21 days – 50 days faster than in the rest of the country. Realtor.com® users view home listings in these markets four times more often than those in the rest of the country. One ZIP code was included per metro area.

While low inventory is a challenge, millennials are the largest generation in U.S. history and they are flexing their muscle when it comes to the housing market. Increasingly, the hottest housing markets are the ones that appeal to millennial preferences, and right now the standouts are relatively affordable suburbs with local ‘it’ factors such as hiking trails, great restaurants, and nightlife. With the largest cohort of millennials turning 30 in 2020, we can expect these types of areas to stay in demand in the years to come.

Key factors heating things up in the top 10 hottest markets:

Relative affordability. The median price for a home in these markets is $360,000 – 1.4 times more than the national median – with prices in five of the top 10 ZIPs exceeding the national average. However, when compared to their immediate surrounding metro area, the median home listing price is lower in six of the top 10 ZIPs and when compared to the county, eight are lower.

Large shares of older millennials. Millennials aged 25 to 34 make up 17 percent of households in the top 10 ZIPs, compared to 15 percent nationally. Older millennial households comprise a greater share of households than their national share in eight out of the top 10 ZIPs. They also make up the largest share of mortgage originations, with 25-to-34-year-olds accounting for 36 percent of mortgages and 35-to-44-year-olds making up 30 percent.

High millennial ownership rates. Eight of the top 10 ZIPs have a higher home ownership rate among 25-to-34-year-olds than in their surrounding county as a whole. The average 25-to-34-year-old home ownership rate in top 10 ZIPs is 50 percent, compared to 39 percent in their respective counties and 41 percent nationally.

Strong job markets. The top 10 ZIP codes are located in counties with an average unemployment rate of 3.6 percent, well below the overall national unemployment rate of 4.4 percent.

High salaries. In nine out of the top 10 ZIPS, the median household income is higher than the national median. The average household income among the top 10 is $75,829, 1.3 times the $57,462 national median. This is true for millennial segment as well; the average household income for 25-to-34-year-olds in the top 10 is $74,635, 1.3 times the $55,871 national median.

Market Highlights – Top 10 Hottest ZIP Codes

#1. 76148 – Watauga, Texas

Named the hottest ZIP code for the second consecutive year, due to its highly competitive housing market and desirable amenities. Watauga is an inner suburb of Fort Worth that has a young population, a strong economy and schools that have been rated among the best in the state. Residents also benefit from being part of a vibrant, multicultural metropolis, with great restaurants and cultural offerings like the Kimbell Art Museum and Fort Worth Zoo.

Key housing stats: Average home listing views in ZIP 76148 are up 28 percent over last year, with homes receiving five times more views than those in the rest of the country. Homes in Watauga sell in 18 days, 5 percent slower than last year, with a median list price of $160,441, up 12.4 percent over last year. Tarrant County is expected to add 28,000 jobs this year, an increase of 3 percent.

#2. 48154 – Livonia, Mich. – A western suburb of Metro Detroit, Livonia combines the best parts of suburban living with close proximity to the great attractions of the resurgent Motor City. It’s just a half hour from downtown destinations such as the Detroit Institute of Art, the historic Eastern Market commercial district and the homes of four professional sports teams. Livonia also is equally close to many of the major employment centers scattered throughout the broader metro area, such as the headquarters of Ford Motor Company in Dearborn, Mich. and Beaumont Health in Royal Oak, Mich. It has also been ranked among the safest cities in Michigan and boasts more than 60 parks spread over 1,389 acres.

Housing stats: More than 86 percent of millennials living in the ZIP own their own homes, compared to only 44 percent in the surrounding county. Homes in Livonia sell in 21 days, 25 percent more quickly than last year, with a median list price of $223,780, up 12.3 percent over last year. Wayne County is expected to add 7,000 jobs this year, an increase of 1 percent.

#3. 49548 Kentwood, Mich. – Kentwood is part of the Grand Rapids area, one of the fastest-growing parts of the country. In recent years, Grand Rapids has become known for its booming economy, huge annual public art competition and a great local microbrewery and dining scene. Kentwood also is conveniently close to the Gerald R. Ford airport, which has been adding direct flights to major destinations throughout the country.

Housing stats: The dominant buyer segment in Kentwood is millennials, who hold 42 percent of new mortgages in the ZIP and have a 62 percent home ownership rate. Homes in Kentwood sell in 16 days, 49 percent more quickly than last year, with a median list price of $118,833, up 22.4 percent over last year. Kent County is expected to add 5,000 jobs this year, an increase of 2 percent.

#4. 02155 Medford, Mass.– Once overlooked as a sleepy city northwest of downtown Boston, Medford is now known for its lively dining options, ample recreation opportunities at Wright’s Park and along the Mystic River, and the annual Mystic River Celebration devoted to the arts. The area is home to the renowned Tufts University, and the T provides easy public transportation access to downtown Boston. Residents also enjoy a low tax rate compared to other cities in the region.

Housing stats: The dominant buyer segment in Medford is millennials, who make up 38 percent of new mortgage holders. Homes in Medford sell in 19 days, roughly 41 percent more quickly than last year, with a median list price of $541,158, up 12.9 percent over last year. Middlesex County is expected to add 18,000 jobs this year, an increase of 2 percent.

#5. 80123 Littleton, Colo. – Situated on the southwest edge of Denver, ZIP 80123 spans communities including Littleton, Marston and Columbine Valley. This suburban hotspot boasts great shopping options, a fun and historic downtown area and plenty of great condo and single-family home options. That’s not to mention its natural beauty and perfect placement for outdoor enthusiasts: Littleton alone features more than 59 parks and an active trail system. Plus, only a 30 minute drive to the base of the Rockies, it’s one of the Denver suburbs with the best mountain access.

Housing stats: The dominant buyer segment in ZIP 80123 is millennials, who hold 34 percent of new mortgages in the area and have a median household income of $72,126. Homes in Littleton sell in 22 days, 19 percent more quickly than last year, with a median list price of $533,873, down 3.8 percent compared to last year. Jefferson County is expected to add 5,000 jobs this year, an increase of 2 percent.

#6. 94546 Castro Valley, Calif. – Castro Valley is a Bay Area community perfectly located for those who want to live close to the thriving tech scene in San Francisco and Silicon Valley at more affordable prices. Because of its central location – it takes about the same time to get to San Francisco, Silicon Valley and Berkeley – it’s especially good for couples who work in different parts of the region.

Housing stats: Millennials make up 35 percent of the new mortgage share in ZIP 94546. Homes in Castro Valley sell in 23 days, about 8 percent more quickly than last year, with a median list price of $728,267, up 6.9 percent over last year. Alameda County is expected to add 4,000 jobs this year, an increase of 1 percent.

#7. 80922 Colorado Springs, Colo. – Located less than 25 minutes from Downtown Colorado Springs, the Colorado Springs Airport, and the University of Colorado at Colorado Springs, ZIP 80922 is about as convenient as it gets. That’s especially true for the thousands who work at the nearby Peterson Air Force Base, but the area is also perfect for those simply seeking an active lifestyle: El Paso County has been called one of the healthiest counties in America. Recreational activity options abound, with miles of nearby trails for hiking, biking, and horse riding.

Housing stats: The number of households in the ZIP grew by 19.5 percent from 2010 – 2017, and it has a home ownership rate of 80 percent among all age groups and 68 percent among millennials. Reflecting the high concentration of military service members in the area, 43 percent of new mortgages in 80922 are guaranteed by the U.S. Department of Veterans Affairs. Homes in Colorado Springs sell in 21 days, about 5 percent more quickly than last year, with a median list price of $273,322, up 4.6 percent over last year. El Paso County is expected to add 9,000 jobs this year, an increase of 3 percent.

#8. 66210 Overland Park, Kan. – Overland Park gets high marks for all the major factors: Top-rated schools, affordable homes, and easy access to shopping and attractions like Kansas City, Mo.’s highly rated Nelson-Atkins Museum of Art. Near the juncture of I-435 and I-69, ZIP 66210 also includes Sprint’s headquarters and the Kansas City metro area’s largest office park, the 50-acre Corporate Woods.

Housing stats: Millennials already comprise 20 percent of the area’s households and are the dominant buying group in the area, holding 39 percent of new mortgages. Homes in Overland Park sell in 24 days, about 22 percent more quickly than last year, with a median list price of $236,454, up 0.5 percent over last year. Johnson County is expected to add 3,000 jobs this year, an increase of 1 percent.

#9. 92126 Mira Mesa– ZIP 92126 encompasses the San Deigo community of Mira Mesa, which was formerly populated mainly by military families of the nearby Marine Corps Air Station, Miramar – where many Top Gun flight scenes were filmed. Recently, Mira Mesa has become a booming area with a diverse populace and wide variety of independent stores, restaurants and microbreweries. Located 15 minutes from the beach and bordered by a 5,800-acre nature preserve called Mission Trails, Mira Mesa is also a prime location for Southern California-style recreation enthusiasts.

Housing stats: From 2010 – 2017, the number of households in ZIP 92126 grew by 7.4 percent, compared to 5.7 percent in the U.S. as a whole. Homes typically sell within 22 days, about 30 percent more quickly than last year, with a median list price of $536,394, up 2.4 percent over last year. San Diego County is expected to add 5,000 jobs this year, an increase of 0.4 percent.

#10. 43026 Hilliard, Ohio – A blend of small-town historical charm, museums and local eateries, Hilliard offers great price-per-square-foot home value and excellent schools. It also provides residents a mix of small-town historical charm, museums and local eateries. On top of that, it’s a quick trip to Columbus, which is home to Ohio State University, multiple Fortune 500 Companies and the newly opened Scioto Mile, a sprawling park in the heart of the city.

Housing stats: The dominant buyer segment in ZIP 43026 is millennials, who hold 41 percent of new mortgages and have a 59 percent home ownership rate. Homes in Hilliard sell in 25 days, about 37 percent more quickly than last year, with a median list price of $259,011, up 24.8 percent over last year. Franklin County is expected to add 16,000 jobs this year, an increase of 3 percent.

Can’t live without your artisanal coffee, avocado toast or an indie record store? Columbus is the place for you, according to realtor.com®’s collaboration with Yelp. This realtor.com® Yelp Hottest Hipster Markets in America listidentifies the most in-demand housing markets in the U.S. with the highest concentrations of “hipster” businesses for home buyers looking to embrace indie culture.

In rank order, the Hottest Hipster Markets in America by ZIP code include:

1. 43202 – Columbus, OH

2. 98122 – Seattle, WA

3. 92104 – San Diego, CA

4. 46802 – Fort Wayne, IN

5. 14620 – Rochester, NY

6. 94117 – San Francisco, CA

7. 90814 Long Beach, CA00

8. 40217 – Louisville, KY

9. 49506 – Grand Rapids, MI

10. 17820 – Colorado Springs, CO

Although their opinions about their music and fashion may be out of the norm, when it comes to real estate — hipsters have a knack for getting it right. Based on our research, there’s clear evidence that “hipster” popularity – in markets like Austin, Texas – has led to mainstream interest and higher home prices over time. Whether it’s the farm-to-table restaurants or urban renewal projects that were already underway, a concentration of hipsters seems to be an indicator of a hot housing market.

From a housing perspective, all the markets on the realtor.com® Yelp Hottest Hipster Markets in America list have strong market dynamics, showing healthy buyer demand with homes selling in an average of 30 days. Each market also has low or average unemployment rates ranging from 2.7 percent to 4.6 percent, compared to 4.4 nationally.

With all the hipster businesses in town it comes as no surprise that these markets are also highly sought after by millennials. Overall, older millennials- ages 25 to 34- in the top ten markets make up an average of 22 percent of the population, higher than the national population share of older millennials of 13 percent. Additionally, these markets are continuing to draw interest from a younger crowd, as the older millennial age group is viewing property listings at a rate 1.2 times greater than the share of older millennials already living in the area, indicating strong interest from others wanting to move into these neighborhoods.

Yelp data shows that mentions of “hipster” occur across a wide range of businesses, from music venues and dive bars, to restaurants, barbers, and vinyl record shops. While some cities and ZIP codes, like Seattle, may be more recognizable as traditional hipster havens, Yelp data shows that there are many under-the-radar locations where Yelpers have identified neighborhoods that tout cool, hipster businesses. The average star rating of businesses with mentions of hipster in the Columbus zip code is 3.8, with the top 10 ZIP codes averaging 4 stars. Beyond searching for hipster businesses, Yelp also offers tools for homeowners like Request a Quote, which allows people to send requests to up to 10 home service providers at once.

“Yelpers are great at identifying up-and-coming areas and businesses, which allows us to predict trends as well as uncover detailed data on what’s happening in local economies right now,” said Carl Bialik, Yelp data editor. “While ‘hipster’ is something of a cliche, it turns out to be a useful term to uncover the types of businesses and attributes we often associate with cool hunters, such as visually appealing interiors and less touristy parts of town.”

Realtor.com® and Yelp’s Top 10 Hipster Markets in Detail

Columbus – ZIP 43202 (Clintonville, Ohio)

The draw: Columbus features art, music, theater, museums, and culture, in addition to being home to Ohio State University. It has a strong economic ecosystem with employers like JP Morgan Chase and a thriving startup scene, with nearly 72 startups for every 1,000 businesses in the area. In addition, after New York and Los Angeles, Columbus is home to more fashion designers than any other U.S. metro area, with a pipeline of young design talent coming from the Columbus College of Art & Design.

The stats: The median listing price is $269,455. The median household earns $44,007 a year, with a low county unemployment rate of 3.8 percent. Millennials make up 28.8 percent of its population, contributed contribute to 26 percent of all page views in the area on realtor.com®, and have a median household income of $46,265.

Seattle – 98122 (Capitol Hill)

The draw: Capitol Hill offers a strong collection of restaurants, bars, boutiques, and culture. Seattle has a booming economy, with tens of thousands of job openings pulling young technophiles into the city.

Seattle-dwellers are some of the most active people in the U.S., with open spaces and parks located all around the city, and Mt. Rainier closeby for hiking in the summer and skiing in the winter.

The stats: The median listing price is $756,653. The median household earns $65,367 a year, with a low county unemployment rate of 3.2 percent. Millennials make up 26.6 percent of the population, contribute to 23.8 percent of all page views in the area on realtor.com®, and have a median household income of $61,089.

San Diego – 92104 (North Park)

The draw: San Diego is known for a plethora of local breweries, farmer’s markets, beach eateries and nightlife for the non-mainstream crowd. Compared to California cities like Los Angeles and the San Francisco Bay Area, San Diego boasts of lower rent and mortgages on average. A concentration of top universities and a thriving startup scene bring many young buyers and renters to the area.

The stats: The median listing price is $597,000. The median household earns $55,130 a year, with a county unemployment rate of 4.1 percent. Millennials make up 23 percent of the population, contribute to 25.4 percent of all page views in the area on realtor.com®, and have a median household income of $55,772.

Fort Wayne – 46802

The draw: Fort Wayne offers fun traditions like BuskerFest, an annual celebration of street performers. Fort Wayne adjusted to the shrinking manufacturing industry faster than its Rust Belt counterparts and today has a strong economy with a lower unemployment rate than other cities in the area.

The stats: The median listing price is $163,925. The median household earns $29,591 a year, with a county unemployment rate of 3.3 percent. Millennials make up 19.9 percent of the population, contribute to 27 percent of all page views in the area on realtor.com®, and have a median household income of $32,243.

Rochester – 14620 (Highland Park)

The draw: Rochester’s Highland Park neighborhood is best-known for its arboretum by the same name, which hosts an annual Lilac Festival drawing in visitors from out of town. From Shakespeare in the Park to live music during the summer, Highland Park is a hotspot for local residents, helping to create the tight-knit community that Rochester residents love.

The stats: The median listing price is $154,925, making it an affordable place for a younger population to settle. The median household earns $43,550 a year, with a county unemployment rate of 4.58 percent. Millennials make up 23.1 percent of the population, contribute to 24 percent of all page views in the area on realtor.com®, and have a median household income of $45,871.

San Francisco – 94117 (The Haight)

The draw: Hippie mecca Haight-Ashbury has transitioned into a hipster-friendly neighborhood. The Haight offers a plethora of restaurants and bars, and its proximity to Golden Gate Park’s free events and concerts can’t be beat.

The stats: Even San Francisco’s most hipster neighborhood costs significantly more than the national average. The median home in The Haight costs $1,396,500. The median household income in this area soars above the national median at $111,817 and its county unemployment rate is well below the national average at 2.9 percent, making the high cost of living more accessible. Millennials make up 31 percent of the population, contribute to 23.8 percent of all page views in the area on realtor.com®, and have a median household income of $113,762.

Long Beach – 90814

The draw: Just south of Los Angeles, Long Beach is a more relaxed, cheaper and friendlier option for those drawn to Long Beach’s social, tight-knit community and charming Spanish-style homes. Add in great dive bars and a vibrant art scene, and it’s no surprise Long Beach is one of the most hipster towns in America.

The stats: The median price to buy a home in Long Beach is $737,000. The average household earns $60,751 a year, with an unemployment rate of 4.5 percent. Millennials make up 19.2 percent of the population, contribute to 22.3 percent of all page views in the area on realtor.com, and have a median household income of $52,001.

Louisville – 40217 (Schnitzelburg)

The draw: With a strong community and affordable local restaurant scene, Schnitzelberg has seen growing popularity over the past several years. Schnitzelberg is a quirky neighborhood with traditions like hosting the World Dainty Championship the last Monday of July.

The stats: Schnitzelberg is one of the most affordable areas on the list, with a median home price of $173,950. The average household earns $53,134 a year, with an unemployment rate of 4.6 percent. Millennials make up 19.3 percent of the population, contribute to 27.7 percent of all page views in the area on realtor.com, and have a median household income of $53,134.

Grand Rapids – 49506

The draw: Between the public art installations and extensive craft brewery scene, it’s no wonder hipsters love Grand Rapids. It attracts artists, musicians, young families, and has a strong LGBTQ community, which puts on the highly-anticipated Grand Rapids Pride event every summer.

The stats: The median home price in Grand Rapids is $387,000. The average household earns $63,308 a year, with an unemployment rate of 3.2 percent. Millennials make up 13.8 percent of the population, contribute to 25.4 percent of all page views in the area on realtor.com, and have a median household income of $67,680.

Colorado Springs – 80903

The draw: Colorado Springs offers the same natural beauty and proximity to world-class skiing and hiking that nearby Denver does, but with a lower cost of living and unemployment rate. Its quaint downtown is filled with mom and pop shops and local watering holes.

The stats: The median price to buy a home in Colorado Springs is $337,000. The average household earns $37,215 a year, with an unemployment rate of 2.7 percent. Millennials make up 16.8 percent of the population, contribute to 22.5 percent of all page views in the area on realtor.com, and have a median household income of $43,841.

Realtor.com® and Yelp’s Hottest Hipster Markets

Ranking

Market

Yelp Hipster Score*

Market Hotness**

1

Columbus, Ohio (43202)

90.1

99.8

2

Seattle (98122)

95.9

94.1

3

San Diego, Calif. (92104)

95.6

93.7

4

Fort Wayne, Ind. (46802)

88.2

95.7

5

Rochester, N.Y. (14620)

92.5

92.8

6

San Francisco (94117)

84.3

96.0

7

Long Beach, Calif. (90814)

93.2

90.7

8

Louisville, Ky. (40217)

97.5

87.8

9

Grand Rapids, Mich. (49506)

88.8

92.4

10

Colorado Springs, Colo. (80903)

86.8

92.9

11

Royal Oak, Mich (48067)

77.6

98.2

12

Oklahoma City, Okla. (73103)

94.9

87.8

13

Milwaukee, Wis. (53207)

96.4

85.6

14

St. Louis (63143)

75.9

96.9

15

Charlotte, N.C. (28205)

93.6

85.9

16

Minneapolis(55406)

80.7

92.7

17

Riverside, Calif. (92501)

88.6

87.0

18

Denver (80203)

93.0

85.0

19

Eugene, Ore. (97402)

82.0

90.5

20

Tampa, Fla. (33603)

99.5

80.1

21

Omaha, Neb. (68104)

91.7

85.0

22

Fresno, Calif. (93728)

84.5

88.4

23

Asheville, N.C. (28806)

83.6

88.7

24

Arlington, Mass. (02474)

68.2

97.5

25

Dallas (75208)

93.5

82.7

26

Boise, Idaho (83702)

89.1

85.2

27

Lawrence, Kan. (66044)

91.8

82.6

28

Santa Rosa, Calif. (95401)

68.6

95.8

29

Fargo, N.D. (58102)

89.3

82.7

30

Santa Clara, Calif. (95051)

65.7

94.5

31

Chico, Calif. (95928)

71.2

90.8

32

Richmond, Va. (23220)

94.1

77.9

33

Orlando, Fla. (32803)

94.5

77.4

34

Buffalo, N.Y. (14222)

83.8

83.0

35

Salt Lake City, Utah (84105)

85.6

80.8

36

Lancaster, Pa. (17603)

85.2

80.5

37

Ann Arbor, Mich. (48104)

80.4

83.1

38

Vancouver, Wash. (98660)

78.1

84.1

39

Gilbert, Ariz. (85234)

71.9

87.4

40

Akron, Ohio (44303)

98.5

73.1

41

Memphis, Tenn. (38104)

81.8

80.5

42

Sacramento, Calif. (94819)

53.1

97.1

43

Greensboro, N.C. (27403)

79.5

81.7

44

Santa Cruz, Calif. (95060)

60.6

92.6

45

Birmingham, Ala. (35222)

90.2

75.8

46

Tulsa, Okla. (74120)

87.9

76.4

47

Indianapolis, Ind. (46205)

95.3

72.6

48

Provo, Utah (84601)

82.3

78.9

49

Nashville, Tenn. (37204)

81.1

79.3

50

Alexandria, Va. (22301)

72.6

83.8

*Hipster Score is measured by the normalized differential in hipster mentions on Yelp per reviews in each zip code compared to the city.

**Hotness is measured by a composite score put together by ranking each area by median days on market and median page views per listing. More details here.

Methodology

The realtor.com® Yelp Hottest Hipster Markets in America list was developed by first leveraging Yelp data to rank ZIP codes by the greatest gap between the share of reviews in the ZIP containing the word “hipster” and the share in the ZIP’s city. The realtor.com® Market Hotness Index was then calculated for each market (based on realtor.com® page views and days on market). Markets were then ranked based on a composite index made up of both the yelp differential and the realtor.com® hotness index. Only one ZIP code per metropolitan area was included. The neighborhoods listed have the most businesses associated with that neighborhood within the ZIP code.

Top millennial home buying hot spots include Salt Lake City, Miami and Orlando, which attract millennials either due to a strong local economy, relative affordability, or both.

Millennials show different preferences in home locations compared to older age groups, and they tend to search in urban areas at a greater rate than other age groups.

The country’s urban areas tend to be more segregated in terms of generational buying interest compared to other areas, meaning that different generations are most interested in different neighbourhoods within urban areas.

Older millennials (25 to 34 years old) represent the largest age demographic of prospective home purchasers, according to monthly surveys conducted by Realtor.com. Since October, older millennials represented 24 per cent of would-be home-buyers, compared to 23 per cent being 34 to 44 years old, the second largest age group.

Since our monthly survey is national in scope, we compiled views to home listings across the country to get a closer look at geographical preferences by age groups. In this deeper dive, we look at the older millennial share of views compared to other age groups in order to better understand which markets are most popular with this influential demographic. We also looked to determine if older millennials tend to share interest in similar markets with other generational groups or whether their preferences are markedly different.

Top Metros for Older Millennials

Among the top 60 metropolitan areas by household count, the metros which saw the largest shares of older millennial listing views compared to the national rate (the “Millennial Index”) included Salt Lake City, Miami, Orlando, Seattle and Houston. Within these metros, the share of older millennial views were approximately 1.2 times larger than their share nationally.

Table 1: Top Metros for Older Millennials

Rank

Metro Area

Millennial Index (25 to 34 Year Old Share of Views vs US)

1

Salt Lake City, UT

1.21

2

Miami-Fort Lauderdale-West Palm Beach, FL

1.19

3

Orlando-Kissimmee-Sanford, FL

1.18

4

Seattle-Tacoma-Bellevue, WA

1.18

5

Houston-The Woodlands-Sugar Land, TX

1.17

6

Los Angeles-Long Beach-Anaheim, CA

1.17

7

Buffalo-Cheektowaga-Niagara Falls, NY

1.16

8

Albany-Schenectady-Troy, NY

1.16

9

San Francisco-Oakland-Hayward, CA

1.14

10

San Jose-Sunnyvale-Santa Clara, CA

1.14

Source: Realtor.com listing page views

Figure 1: Top Older Millennial Zip Codes by Metro

Source: Realtor.com listing page views

The top markets show a diverse set of characteristics, with some markets such as Orlando, Seattle, Miami, San Jose, San Francisco and Los Angeles, attracting older millennials due to strong economies and strong job growth, whereas other markets such as Albany and Buffalo attract this age demographic due to their relative affordability.

As the top market on the list, Salt Lake City is drawing interest due to a combination of several factors. It already has a higher than normal share of 25-to-34-year-olds in its population. It is also one of the fastest growing metros in terms of population and jobs, and has the lowest unemployment rate of the top markets listed in Table 1. Salt Lake City is also relatively affordable, as the percent of household income required to buy a median priced home is 30 per cent, with only Albany and Buffalo being more affordable from the top metros on this list. Over the past three months, 25-to-34-year-olds represented 38 per cent of new mortgages in Salt Lake City compared to 33 per cent nationally.

Table 2: Key Economic Variables for the Top 10 Metros for Older Millennials

Top Zip Codes for Older Millennials

The focus on the metropolitan area market definition above leaves out millennial hots pots in broader metropolitan areas such as New York. The top zip codes for the older millennial demographic are actually dominated by zip codes within both New York and Los Angeles, as seen in Table 3.

Table 3: Top Zip Codes for Older Millennials

Rank

Zip Code

Zip Name

Metro Area

25 to 34 Year Old Share of Views Vs US

1

92236

Coachella, CA

Riverside-San Bernardino-Ontario, CA

2.07

2

90240

Downey, CA

Los Angeles-Long Beach-Anaheim, CA

2.00

3

11204

Brooklyn, NY

New York-Newark-Jersey City, NY-NJ-PA

1.99

4

11373

Elmhurst, NY

New York-Newark-Jersey City, NY-NJ-PA

1.96

5

33137

Miami, FL

Miami-Fort Lauderdale-West Palm Beach, FL

1.94

6

90061

Los Angeles, CA

Los Angeles-Long Beach-Anaheim, CA

1.92

7

11370

East Elmhurst, NY

New York-Newark-Jersey City, NY-NJ-PA

1.91

8

11106

Astoria, NY

New York-Newark-Jersey City, NY-NJ-PA

1.9

9

90222

Compton, CA

Los Angeles-Long Beach-Anaheim, CA

1.89

10

90650

Norwalk, CA

Los Angeles-Long Beach-Anaheim, CA

1.89

Source: Realtor.com listing page views

Older Millennials Show Different Preferences in Home Locations

We also analyzed listing views by zip code and age group in order to quantify how similar or dissimilar older millennial tastes are compared to other age groups. Unsurprisingly, generational groups closer together in age tended to view similar areas. Listing views from home shoppers aged 25 to 34 were most strongly positively correlated with views from the 18 to 24 year old age group, and most strongly negatively correlated with views from the 45 to 54 and 55 to 64 year old age groups. They were less negatively correlated with views from seniors aged 65 and older.

In Table 4, the correlations between older millennials (ages 25-34) and each other age group are shown broken down by density categories. Since the correlation between older millennials and younger gen x-ers (35 to 44 year olds) is less negative than between other older age groups, we expect that older millennials are going to be facing more competition from this generation- which also happens to have more buying power and more home-buying experience.

By grouping the zip codes into density categories, we can also see that negative correlations between views from older millennials and other older age groups were more negative in higher-density areas such as second city and urban zip codes, and less negative in lower-density rural, town and suburban zip codes. This is likely due to the relative affordability of suburban, town and rural areas allowing for more options for older millennials, and would warrant further investigation in a future study. However, in general, the older millennial share of views to urban zip codes was 1.2 times larger than their share of all views nationally.

Generational Segregation

Overall, view share variance was highest among urban zip codes and lowest in rural zip codes. Table 5 shows the average standard deviation of view shares within zips that are urban, suburban, second city, town or rural. These results suggest more generational segregation within urban areas and more integration within less densely populated areas. This is significant in that older millennials can expect more competition from each other in areas of greater generational segregation and more competition from other generations in areas of less generational segregation.

Applying the same exercise to the top 60 metropolitan areas by household count, we see that Salt Lake City, Miami, Los Angeles, New York and San Jose tend to be the most generationally segregated, whereas Tucson, Albuquerque, Knoxville, Phoenix and Nashville tend to be least generationally segregated.

Table 6: Most Generationally Segregated Metros

Metro Area

Avg Std Dev

Salt Lake City, UT

9.1%

Miami-Fort Lauderdale-West Palm Beach, FL

9.1%

Los Angeles-Long Beach-Anaheim, CA

9.1%

New York-Newark-Jersey City, NY-NJ-PA

9.0%

San Jose-Sunnyvale-Santa Clara, CA

9.0%

Source: Realtor.com listing page views

Table 7: Least Generationally Segregated Metros

Metro Area

Avg Std Dev

Tucson, AZ

5.1%

Albuquerque, NM

5.8%

Knoxville, TN

6.3%

Phoenix-Mesa-Scottsdale, AZ

6.5%

Nashville-Davidson–Murfreesboro–Franklin, TN

6.8%

Source: Realtor.com listing page views

Methodology Notes

The data set referenced in this article includes listing views to homes on Realtor.com over the past 8 months.

The share of views attributed to older millennials within either zip codes or metro areas were compared to the national share of views in order to create the “Millennial Index”.

Millennials are a key factor turning up the heat in America’s hottest housing markets. Fueled by large populations of millennials attracted to affordable prices and strong job markets, top ZIP codes, led by Watauga, Texas (76148) and Pleasant Hill, Calif. (94523), are rising above 32,000 others to make up realtor.com®’s hottest ZIP codes of 2016.

We ranked the list based on the time it takes properties to sell and how frequently homes are viewed in each ZIP code. Homes in this year’s top 20 hottest markets sell in an average of 25 days – just over three weeks – 53 days faster than the rest of the country. Realtor.com® users view homes in these markets almost four times more often than homes in the rest of the country.

The 2016 hottest ZIP codes report underscores the role that large populations of millennials, the ability to purchase within expensive housing markets, as well as strong job markets and steady salaries play in the interest shown for these highly competitive locales.

“Homes for sale in this year’s hottest ZIP codes are selling almost as quickly as they hit the market,” said Jonathan Smoke, chief economist for realtor.com®. “While millennials are usually a significant presence in most markets, their sheer size and buying power have made them a force to be reckoned with in these hot ZIP codes and given them the power to shift supply and demand dynamics.”

Millennials, who are the largest generation in U.S. history, represent an even greater share of the population in most of the top 10 hottest zips. In ZIPs such as Northglenn, Colo. (80233), Colorado Springs, Colo. (80916), and North Park, Calif. (92104) the 25-34 age millennial population is beating the U.S. average by 1.8, 1.4, and 1.2 times, respectively.

Although first time buyers usually have more limited incomes than other buyers, millennials in these areas are more likely to earn in excess of six figures. In the top 10 hottest markets, the share of millennials earning more than $100,000 is 1.8 times higher than the U.S. overall. This is especially true for Pleasant Hill, Calif. (94523), Petaluma, Calif. (94954), and Melrose, Mass. (02176) where the share of millennials earnings $100,000 is 2.1, 2.2, and 2.0 times, respectively, as great as the national share.

Strong job markets drive household growth

The top 10 hottest ZIP codes are also located in counties with robust employment opportunities. Collectively the top 10 hottest ZIPs are seeing average job growth of 2.3 percent this year, which is 35 percent stronger than the national rate. They have an average unemployment rate of 3.8 percent, which is more than 100 basis points lower than the U.S. overall. Adams County, Colo. – home to No. 3 on the list, Northglenn – has the lowest forecasted unemployment rate for the end of the year at 2.9 percent.

These hot areas are also magnets for people relocating, expanding their families and moving out on their own – also known as population and household growth. Over the last five years, the top 10 hottest ZIP codes have seen an average of 6 percent growth in households, which is 20 percent stronger than the national average. Northglenn (80233) and Colorado Springs (80916) have seen growth at more than twice the national average.

Opportunity to purchase into more expensive housing markets

One of the largest drivers in the top 10 hottest markets is home prices. The median price for a home in the top 10 hottest markets is $331,000, which is 36 percent higher than the national median of $243,000. While that may seem expensive, these areas represent less expensive neighborhoods that give buyers a chance to live in or close to expensive housing markets.

When compared to their surrounding areas, these ZIPs offer prices that are 19 percent and 22 percent less expensive than their surrounding counties and metro areas, respectively. This is especially true for ZIP codes such as Watauga, Texas (76148), Colorado Springs, Colo. (80916), and Milwaukie, Ore. (97222) where prices are 48, 47, and 35 percent lower their respective counties.

Market Highlights – Top 10 Hottest ZIP Codes

#1. 76148 – Watauga, Texas

An inner suburb of Fort Worth ranks as this year’s No. 1 hottest ZIP code in the country. Watauga is a youthful and relatively dense suburban community, with a median age of 34 years and 5,924 people per square mile. Close to central Fort Worth, Watauga residents have easy access to a great restaurant and craft brewery scene, cultural offerings like the Modern Art Museum of Fort Worth – plus two football powerhouses, the Dallas Cowboys and Texas Christian University, less than 20 miles away.

Millennial activity: The dominant buyer segment in Watauga is millennials between the ages of 25 and 34 years old and accounts for 33 percent of all mortgages in the market. Many millennials in ZIP 76148 are already homeowners, making up 65 percent of the total population of owners in the area. Twenty-one percent of millennial households make over six figures.

Housing market and jobs: Homes in Watauga sell in 17 days, almost 30 percent faster than last year. That’s 24, 26, and 61 days faster than county, metro and U.S. respectively. Homes in this ZIP code receive 1.9, 2.0, and 5.8 times more views on realtor.com® than the county, metro and U.S. respectively. The median listing price in Watauga is $137,000, which is up 16.4 percent over last year. This is 48 percent lower than county, 57 percent lower than metro, and 43 percent lower than the U.S., respectively. The area has experienced 3 percent job growth, plus 28,000 jobs, over last year and currently has an unemployment rate of 3.9 percent and trending higher.

#2. 94523 – Pleasant Hill, Calif.

This slice of suburbia is located in San Francisco’s East Bay, less than 30 miles from San Francisco and nearly 20 miles away from Berkeley and Oakland. It borders Walnut Creek, an affluent community with expensive homes and boasts a beautiful downtown area with parks and highly ranked public schools such as Strandwood Elementary School and Sequoia Elementary School, making Pleasant Hill highly desirable for home buyers. Its central location to highways 680 and 24 and a BART station make it a central location for commuters.

Millennial activity: The dominant buying group in this ZIP is 35 to 44 year olds which make up 31 percent of buyers, but millennials are a close second making up 26 percent of mortgages. The biggest strength for millennials in Pleasant Hill is their income. Forty-two percent of millennials in this area make over $100,000, which is two times the norm for millennials in the U.S.

Housing market and jobs: Homes in Pleasant Hill sell in 19 days, 30 percent faster than last year and 12, 10, and 59 days faster than the county, metro and U.S., respectively. Homes in this ZIP code receive 2.0, 2.4, and 5.4 times more views than the county, metro and U.S., respectively. The median list price for the area is $630,000, up almost four percent for the year and seven percent higher than county, 23 percent lower than metro, and 160 percent higher than U.S. The area is experiencing 2 percent job growth this year, which will translate into 7,200 jobs created. The area’s unemployment rate is 4.4 percent and trending lower.

#3. 80233 – Northglenn, Colo.

ZIP code 80233 is located approximately 15 miles outside downtown Denver. It covers parts of Northglenn and Thornton, Colo. and is a perfect locale for families who enjoy an active lifestyle. It offers trails that are part of the Greenway Trail System which connect to the major trail systems in the metro Denver area. The broader city of Northglenn is home to 26 parks that include great places for kids to explore including lakes and ponds, playing fields and courts. ZIP 80233 is part of Adams 12 Five Star Schools – one of the largest and most distinguished school districts in Colorado.

Millennial activity: Thirty-six percent of mortgages in Northglenn are made up of millennials and they are the dominant home buyer in the area. It is slightly more common for millennials to make over six figures in Northglenn – 22 percent of millennials in the area – than they are in the county and U.S. It is also 1.0 and 1.3 times more common for them to be homeowners, compared to the county and U.S., respectively.

Housing market and jobs: Homes in Northglenn sell in just over a week – 11 days. While that is slower than last year, it is still 20, 29, and 67 days faster than the county, metro and the U.S., respectively. Northglenn homes receive 2.0, 2.0, and 4.5 times more views than the county, metro and U.S., respectively. The median list price in Northglenn is $278,000, up 16.5 percent. Asking prices are 24 percent and 45 percent lower than the county and metro respectively, and 15 percent higher than U.S. The area has experienced three percent job growth, plus 7,900 jobs, over last year and currently has an unemployment rate of 3.44 percent and trending lower.

#4. 80916 – Colorado Springs, Colo.

Located in southeastern Colorado Springs, ZIP (80916) includes the Peterson Air Force Base and Colorado Springs airport and is located within an hour and a half drive of popular Rocky Mountain attractions like Pike’s Peak. The broader city of Colorado Springs is an outdoor enthusiast’s dream, with mountains, canyons, springs, and numerous golf courses. The city is also home to several military bases and counts U.S.A.A., Progressive Insurance, Lockheed Martin and Atmel among its largest employers; it has a cost of living seven percent below the national average.

Millennial activity: Adventure seekers flock to Colorado Springs and millennials are no exception. Not only are they the dominant buyer segment in the area, they make up 27 percent of the household population in this ZIP – that’s 1.4 more than the surrounding county and 1.78 more than the U.S. average! Thirty-nine percent of millennials in the area are already homeowners, which is almost in line with the county and U.S. average.

Housing market and jobs: Homes in Colorado Springs sell 17 in days, more than 50 percent faster than last year, and 29, 33, and 61 days quicker than the county, metro and U.S., respectively. Homes receive 2.0, 2.0, and 3.6 times more views than the county, metro and U.S., respectively. The median list price is $178,000, up 12.1 percent year over year and 47 percent, 47 percent, and 26 percent lower than the county, metro and U.S., respectively. The area has experienced two percent job growth, plus 7,200 jobs, over last year and currently has an unemployment rate of 4.4 percent and trending lower.

#5. 78247 – San Antonio

This is the fifth hottest market in the country in 2016, moving up a notch from No. 6 last year. San Antonio is one of the most affordable big cities in the U.S., with a cost of living well below the national average. Several Fortune 500 companies call the broader area of San Antonio home such as U.S.A.A. and Valero. Coined “Military City USA,” San Antonio is home to 132,000 students graduating from military training each year. The 78247 ZIP code contains a variety of residential neighborhoods and access to the nearly 1,000-acre McAllister Park and popular disc golf course at McClain Park. Despite the economic boom, San Antonio’s quaint and relaxed environment is one of its biggest assets.

Millennial activity: Similar to many other hot ZIP codes, millennials are the dominant segment of home buyers making up 36 percent of mortgages. Financially, San Antonio has a lot to offer millennials; 24 percent of millennials in this ZIP make over $100,000, which is 1.5 times the county and national norm. Many millennials are already homeowners and have a homeownership rate of 61 percent, which is 1.6 times and 1.5 times greater than the county and U.S., respectively.

Housing market and jobs: Homes in San Antonio sell in three weeks or 28 days, which is 25, 33, and 50 days faster than the county, metro and U.S., respectively. People look at homes in San Antonio 2.0, 2.3, and 4.0 more than they do other homes in the county, metro and U.S., respectively. The median listing price in San Antonio is $184,000, up 5.8 percent year over year and 26 percent, 33 percent, and 24 percent lower than county, metro and U.S., respectively. The area has experienced 3 percent job growth, over last year and currently has an unemployment rate of 3.6 percent and trending higher.

#6. 94954 – Petaluma, Calif.

Known as the southern gateway to Sonoma County and within commuting distance of San Francisco, transit options to and from Petaluma will be boosted by a second Sonoma Marin Area Rail Transit stop at the end of September, making it more attractive than ever. Petaluma is home to the headquarters of a number of iconic Northern California companies, including, Calix, CamelBak, Clover Stornetta Farms, Lagunitas Brewing Company, and Athleta Inc. It has an old traditional downtown with small-town feel and many Victorian homes all within a short distance to the city and Marin County.

Millennial activity: While millennials are not the dominant buyer segment in Petaluma, they are a close second place. Buyers between 35 and 44 years old make up 27 percent of mortgages in the area, and millennials are not far behind with a mortgage share of 25 percent. Where millennials really benefit in this market is their salaries, 43 percent of millennials in this hot area make over $100,000 which is 1.8 times higher than the norm for the county and U.S.

Housing market and jobs: Homes sell in 27 days, 9.2 percent faster than last year and 16, 16, and 51 days faster than the county, metro and U.S., respectively. Realtor.com® users view homes in the area 1.8, 1.8, and 3.7 times more than others in the county, metro and U.S., respectively. The median list price for the area is $596,000, up 5.7 percent year over year, which is 8 percent lower than county and metro, and 147 percent higher than U.S. The area has experienced two percent job growth, plus 4,000 jobs, over last year and currently has an unemployment rate of 3.8 percent and is trending lower.

#7. 02176 Melrose, Mass.

Ranked as the hottest ZIP code in 2015, Melrose fell six rankings this year to the 7th spot as the market normalized from supply beginning to catch up with demand. Located less than 10 miles from Boston, Melrose is a magnet for young professionals given its easy access to the city and Logan International Airport. It is served by multiple commuter rail lines, the subway, buses, and is near U.S. Route 1. Melrose’s proximity to Cambridge, which is home to tech and medical companies along with world-renowned educational institutions, also makes it an attractive option given its relative affordability.

Millennial activity: Millennials are the dominant group of home buyers in Melrose and make up 36 percent of mortgage shares. Their homeownership rate is 1.3 times higher than the surrounding county and very similar to the U.S. ownership rate. The number of millennials earning over $100,000 is the same the overall county, but double the average share in the U.S.

Housing market and jobs: Homes in Melrose sell in 29 days, which is 3.5 percent faster than last year and 20, 28, and 49 days faster than the county, metro and U.S., respectively. People look at homes in Melrose 2.3, 2.7, and 5.2 times as often as other homes in the county, metro and U.S., respectively. The median list price in Melrose is $462,000, which is up 13.1 percent from last year, 10 percent lower than county, but eight percent and 91 percent higher than the metro and U.S., respectively. The area has experienced one percent job growth over last year and currently has an unemployment rate of 3.4 percent and trending flat.

#8. 63126 Crestwood, Mo.

Ranked in the No. 7 spot last year, Crestwood dropped one notch to No. 8. The biggest reason for Crestwood’s popularity is its prices, which are about half of those of the surrounding area of historic Kirkwood and Webster Groves. Crestwood is the most inexpensive community that feeds into Lindbergh Schools, a district that has received national honors and several state awards. Crestwood has 120 acres of parks and is home to the Sappington House Historical Site and close to the historic Grant’s Farm.

Millennial activity: Sixty-seven percent of millennials are already homeowners in Crestwood, which is 1.4 and 1.7 times the average share for the surrounding county and U.S. Despite the number of millennials already owning homes in Crestwood, they are still the dominant buying segment accounting for 38 percent of mortgage. Twenty-eight percent of millennials make over six figures in Crestwood, which is 1.4 and 1.4 times their average share in the county and U.S., respectively.

Housing market and jobs: Homes sell in 30 days in Crestwood, 21 percent faster than last year and 27, 38, and 48 days faster than the county, metro and U.S., respectively. Homes in this hot ZIP receive 2.6, 3.2, and 4.7 times more views than the county, metro and U.S., respectively. The median list price for Crestwood is $183,000, up 9.8 percent year over year. Asking prices are 1 percent, 9 percent, and 24 percent lower than the county, metro and U.S., respectively. The area has experienced 2 percent job growth, plus 9,000 jobs, over last year and currently has an unemployment rate of 3.9 percent and is trending lower.

#9. 97222 Milwaukie, Ore.

A town of 20,000 that sits on Portland’s southern edge, Milwaukie residents have convenient access to Portland and surrounding areas via the highly rated TriMet transit system. New in September 2015, residents can now reach downtown Portland in 25 minutes. This area offers waterfront boating, walks along the marina, and a popular farmer’s market.

Millennial activity: Millennials are the dominant buyer segment in Milwaukie making up 28 percent of the mortgages being purchased in the area. They account for 14 percent of the households in the area, which is 1.19 times greater than the county and in line with the national average.

Housing market and jobs: Homes in Milwaukie sell in 24 days, 7.3 percent slower than last year but 23, 20, and 54 days faster than the county, metro and U.S., respectively. Realtor.com® users view homes in Milwaukie 2.6, 2.4, and 3.5 times as many times as they view homes in the county, metro and U.S., respectively. The median list price for a home in Milwaukie is $309,000, up 12.2 percent year over year, which is 35 percent and 25 percent lower than county and metro, respectively, and 28 percent higher than U.S. The area has experienced 4 percent job growth over last year and currently has an unemployment rate of 4 percent and is trending lower.

#10. 92104 North Park, Calif.

92104 includes San Diego’s North Park neighborhood and nearby Burlingame and Altadena. The area is known for its American Craftsman-style homes, walkability, trendy eateries, art galleries, and microbreweries – as well as a bit of a hipster vibe. The neighborhood also contains the Ray Street Arts District and is adjacent to the sprawling Balboa Park, which houses many of the city’s cultural institutions, as well as its renowned zoo.

Millennial activity: Millennials are the leading segment of home buyers in ZIP 92104, making up 32 percent of mortgages in the area. Twenty-six percent of the households in the area are between the ages of 25 and 34 years old, which is 1.5 and 1.7 times higher than their share in the county and U.S.

Housing market and jobs: Homes in the area sell in just 22 days, 24 percent faster than last year and 20, 20, and 56 days faster than the county, metro and U.S., respectively. Homes receive 1.5, 1.5, and 3.1 times more views than county, metro and U.S., respectively. The median list price for homes in this hot ZIP is $497,000, up 17.1 percent year over year and 18 percent lower than both the county and metro, respectively, but 106 percent higher than U.S. The area has experienced one percent job growth, over last year and currently has an unemployment rate of 4.6 percent and trending lower.